Sure, this isn't the mid-'70s, when Iconix Brand Group's
The brand has had a bit of a renaissance in recent years. New ownership brought back the once iconic Op Pro annual surfing competition in 1998. Ocean Pacific then went on to find celebrity endorsers on this side of the millennium, extending itself to alternative rockers like Hoobastank and Fu Manchu, as well as electronica pioneer The Crystal Method.
Extreme sports offer compelling apparel opportunities. Just check out the success of companies like Volcom
The challenge for Iconix will be to cash in without appearing to have sold out. It's a delicate balance, especially if the brand is eventually perceived as an in-house Wal-Mart label. However, if you ink an exclusivity deal, you can't go wrong by hooking up with the country's leading apparel retailer. By the time the new product lines roll out next year, you're going to be seeing a whole lot of Op around.
Even if most of those Ocean Pacific-donning kids think "hang ten" is something you do when you blow $10 at the local arcade, it's the easiest way to ride the biggest wave.
Wal-Mart is an active stock pick for Inside Value newsletter subscribers. Zumiez and Volcom have been recommended to Hidden Gems subscribers. Pacific Sunwear is a Stock Advisor selection. Whether or not you have an old pair of Op surf trunks, Hawaiian silk shirt, or T-shirt in your apparel arsenal, a free 30-day trial subscription to either newsletter service is yours for the taking.
Longtime Fool contributor Rick Munarriz has wiped out plenty of times on Flowrider surfing simulators. He does not own shares in any of the companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a gnarly disclosure policy.